Midwest was recently awarded a contract from Arcelor-Mittal to sandblast and then coat with a rust inhibitor one of their yard locomotives. The locomotive came to Midwest disassembled and sandblasting was done in stall six of the roundhouse in an enclosed area. After the rust inhibitor was applied, the locomotive was returned to Arcelor-Mittal and the remaining parts of the locomotive were then sent to Midwest to be sandblasted and coated also. The locomotive is to be re-assembled and painted in the steel mill’s maintenance and paint shops.
Arcelor-Mittal owns upwards of 40 locomotives within their three facilities and at any one time a number of them are out of service for maintenance and/or painting. Because of the proximity of Midwest to the Cleveland facility it is an ideal situation for them to contract Midwest to do the sandblasting for them. It shortens the timeframe required by eliminating coordination of shipping through CSX to and from a facility of greater distance from their plant. We may also have the opportunity to paint their locomotives once we get the paint booth donated by General Electric installed in the roundhouse.
Midwest may have the opportunity to turn around two or three locomotives a year for Arcelor-Mittal. The revenue brought in by the current project will greatly help Midwest to continue work on ongoing projects such as equipment and building maintenance. The possibility of two or three a tear would create a revenue stream that could help create some financial stability into the future.